Quite simply this is a case of Wallace and the media not knowing the eligibility rules. as Wallace is now a SOO player, and in the mix for Kangaroos election, he can only play for them. If he misses selection in the Aust squad, he would have to apply to have his eligibility changed, and allow him to play for Scotland. At the end of the world cup period, the slate is wiped clean, he could play SOO in 2009 and be eligible for Australia.
With Farah, if he did play with Lebanon in the 2007 WC qualifiers, he would be locked into them until the end of the world cup period, that is whay he backed out when he had the chance after the Tigers finally cleared it.
The question Scotland have to ask themselves is will Wallace simply change his eligibility back to Aust in 2009 if he does play with them at the WC. The answer would appear to be yes, so what do Scotland gain long term?? Are they better to go with guys with cloers ties to their national team, who will be available for internationals in the future??
The short term gain is termpting when you are on the world stage, but maybe looking to the period 2009 - 2013 is what is required, and creating loyal international players who have a passion for the jersey, and are given the opportunity to play in regular meaningful international fixtures.